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Who and What You Know: Social and Human Capital in Black Middle-Class Economic Decision-Making

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Abstract

There has been considerable quantitative research examining the significant wealth and asset differences between blacks and whites, indicating that factors such multigenerational inheritance and homeownership have formed these differences. However, there is limited qualitative research on the subject, particularly examining the intrinsic factors that influence the decision-making process. Part of the process for gaining wealth and asset attainment is presumed to take place through social and human capital. This qualitative study examines the manner in which the influences of social and human capital shape black middle-class wealth and asset decision-making. Twenty-nine in-depth interviews with black middle-class c from three metropolitan cities were completed to provide insight into the factors that influence their economic decision-making. Results indicate black social and human capital are interrelated in the process of decision-making and play an important role in the understanding of contemporary wealth and asset decision-making for black middle-class families.

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Authors and Affiliations

  1. Texas State University, San Marcos, TX, USA

    Scott Wm. Bowman

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  1. Scott Wm. Bowman
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Correspondence to Scott Wm. Bowman.

Appendices

Appendix 1: List of Questions

Human Capital

  1. 1.

    Without the help of any outside assistance, how comfortable do you feel with your overall knowledge about the processes for wealth and asset attainment?

  2. 2.

    As a youth in high school, were business-related classes made available and did you take any of these classes?

    (if they graduated from college) Did you take any business classes in college?

  3. 3.

    Without the help of any outside assistance, how comfortable do you feel with your overall knowledge about the processes for wealth and asset attainment?

Social Capital

  1. 1.

    In current wealth and asset attainment, did you set this up yourself or did you get professional assistance?

    (If professional) How did you choose this company?

  2. 2.

    Do you feel that you have or could make a general connection to other personal or professional relationships such as a professional connection to help you?

  3. 3.

    Have you ever sought out any community-based assistance (e.g., the Urban League) for assistance in wealth and asset attainment? If no, why not/if yes, why?

    (If attended, what was the size of the group? Was there anything that stood out to you in the meeting itself)?

  4. 4.
    1. a.

      Would you have a different expectation regarding knowledge for Blacks versus Whites? Why?

    2. b.

      Would you have a different expectation regarding capability for Blacks versus Whites? Why?

    3. c.

      Would you have a different expectation regarding connections for Blacks versus Whites? Why?

Appendix 2: Participant Demographics

  • There were 29 total couples that participated in the study.

  • Each couple was a heterosexual couple and married at the time of the interview.

  • Of the participating couples, four couples were automatic participants based on their status as small business owners.

    • Phx #2—catering business

    • L.A #6—restaurant business

    • Detroit #5—restaurant business

    • L.A. #7—property ownership (rental properties)

  • Of the 29 couples, 26 were home owners. The three non-home owners were all located in Los Angeles (L.A. #2, #6 and #9).

  • Participant’s education levels (individual):

    • 100 % of the participants were high school graduates

    • 35 of 58 participants graduated college

      • Phx #2—husband and wife

      • Phx #3—wife only

      • Phx #5—husband and wife

      • Phx #8—husband and wife

      • Phx #9—husband and wife

      • Det #2—husband only

      • Det #3—husband and wife

      • Det #6—husband and wife

      • Det #8—husband and wife

      • Det #10—husband and wife

      • L.A. #2—husband and wife

      • L.A. #4—husband and wife

      • L.A. #6—husband and wife

      • L.A. #7—wife only

      • L.A. #8—husband and wife

      • L.A. #9—husband and wife

      • L.A. #10—husband and wife

      • Phx #2—husband and wife

      • Phx #2—husband and wife

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Bowman, S.W. Who and What You Know: Social and Human Capital in Black Middle-Class Economic Decision-Making. Race Soc Probl 8, 93–102 (2016). https://doi.org/10.1007/s12552-016-9169-6

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